Tesco in Hungary: leaving or remaining?
The CEO of the Hungarian Tesco gave an interview to napi.hu in which he talked about model change, changes in the tax system, future possibilities and downsizing. The British company sent away more than 1,000 of their employees in Hungary, and many are afraid that this is just the beginning of their departure from the Hungarian market like it happened in Poland before.
In 2019, the company’s income decreased by more than 100 billion HUF (338 million EUR). Still, Mr Zsolt Pártos, the Hungarian CEO of the company, said that the reason behind that was the downsizing of their stores and the withdrawal of those products which were not profitable enough. Tesco left Poland before, but Mr Pártos said that the Czech, Slovak and Hungarian market is different, for example, their market share is much more significant (in Hungary that is 16-17 pc). Furthermore, Tesco Polska was making a loss, but the opposite is true in the case of the other three countries of the region. Therefore, he said that by selling the Polish branch they acquired capital they can invest in the Czech Republic, Hungary and Slovakia.
According to Mr Pártos,
the Hungarian Tesco is going to remain.
Indeed, instead of leaving, they are going to invest in the Czech Republic, Slovakia and Hungary. For example, they are going to cooperate with Shell, and they already integrated new regions into their online purchase system.
- Hungarian Tesco to send away its employees in waves
- Is Tesco leaving Hungary?
- Tesco prepares to sell Hungarian business?
Meanwhile, the Hungarian Tesco announced that they were to send away hundreds of their former employees. In the last year, Tesco sent away more than 1,000 people. Mr Pártos said that they closed non-profitable shops and ceased to sell products of the same category. However, they extended their online system and hired hundreds of people during the quarantine. He added that
they would like to have a satisfied workforce
so they train their employees at the Tesco Academy, they continuously raise their wages and offer family-friendly, flexible working hours to their colleagues.
He highlighted that they are committed to remaining in Hungary since they are expanding there. Furthermore, their services are reachable for 75pc of the Hungarians, and 80 pc of the people buy from them, which is unique in the sector, like their F&F clothes. Mr Pártos said that the months of the coronavirus epidemic were extremely difficult for them, but he is very proud of the Tesco employees.
Source: napi.hu
When online ordering and delivery of ALL Tesco food items is available for home delivery in every larger city of more than 30,000 people and within 25 -30km of them, I would say they are doing something during these trying times we are experiencing. Sure home delivery would cost more but if done right it could open up new employment and facilitate a larger customer base.. TESCO are you listening?
Tesco in Hungary is total rubbish compared to their UK operations. A very limited product range, poor quality, frequently out of stock on online orders and on quite a number of household items, double the price of the local Vietnamese stores that proliferate in Budapest. The buying department for Tesco Hungary is not even in Hungary so they cannot say that they are catering to local market conditions. The problem is that their competitors, Aldi and Lidl do the same: they offer a fraction of the range available in the UK stores and none if the better stuff. Auchan is cheap but far from cheerful, another low quality, limited range chainstore. There is not a single good supermarket in the whole of Budapest so presumably there is not one in the whole of Hungary.
Woodsie: companies do not ‘send away’ employees, they make them redundant. Honestly!
No competition in Hungary so retail is very limited in offer.
Tesco’s is at least 10-20% cheaper than Auchan on Most products.